China’s manufacturing sector expanded for the sixth consecutive month in April albeit at a slower pace, according to the HSBC Flash Purchasing Managers’ Index™. The headline figure of 50.5, a two-month low, is down from 51.6 in March.
New export orders fell while output and new orders increased but at a slower rate. Employment levels fell on the previous month, representing a change of direction.
Beijing is expected to respond strongly to sustain the economic recovery by increasing efforts to boost domestic investment and consumption
Greater China, HSBC
The Flash China Manufacturing Output Index for April dropped to 51.1, a two-month low, from 53.0 in March.
Qu Hongbin, Chief Economist for Greater China and Co-Head of Asian Economic Research at HSBC, said: “New export orders contracted after a temporary rebound in March suggesting external demand for China’s exporters remains weak. Weaker overall demand has also started to weigh on employment in the manufacturing sector. Beijing is expected to respond strongly to sustain the economic recovery by increasing efforts to boost domestic investment and consumption in the coming months.”
PMIs™ are a monthly indicator of economic trends. The China survey is based on responses from purchasing executives in more than 420 manufacturing companies. Any figure above 50.0 signals expansion, while below 50.0 indicates contraction.
HSBC’s final China Manufacturing PMI™ for April is due on Thursday, 2 May.
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